University of Twente Student Theses


Optimizing purchasing and distribution decisions at Fugro : a mathematical programming approach

Abeniacar, K. (2018) Optimizing purchasing and distribution decisions at Fugro : a mathematical programming approach.

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Abstract:This thesis presents a model for jointly determining purchasing and distribution decisions and is carried out together with the Fleet Services Department of Fugro. Fugro operates a fleet of vessels in different regions around the world. These vessels are required to be optimally equipped to fulfill their tasks. Fleet Services has a global network consisting of a large supplier base and multiple warehouses. This renders it difficult to evaluate the costs of all alternative choices. We developed a mixed integer linear programming model for consumables & parts to minimize total purchasing and logistics costs while ensuring all required goods are supplied to the vessels. We modeled the distribution network as a directed graph and incorporated applicable distribution options. We considered these options together with procurement and freight discounts. We re-enacted a test case of 15 port calls, occurred in 2017, and compared the cost of optimal decisions for purchasing and distribution with the realized costs. We concluded that modifications in the purchasing and distribution decisions could yield to significant savings.
Item Type:Essay (Master)
Fugro Marine Services B.V., Leidschendam, The Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:31 mathematics, 85 business administration, organizational science
Programme:Industrial Engineering and Management MSc (60029)
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